Government of India has extended the timeline for repayment of Ethanol Projects with timeline for repayment under the schemes
The Center has decided to extend, by September 30, the repayment period for sugar mills in respect of all programs announced between 2018-2021 to make it easier for project sponsors to complete their projects and receive compensation benefits from ethanol production, a statement said on Tuesday. With the aim of increasing ethanol production and supply under the ‘Ethanol Blended with Petrol (EBP) program,’ especially during the remainder and thus improving the liquidity status of sugar mills so that they can clear back debts. Sugarcane growers, the Institute has announced various plans for sugar milling programs and milling facilities between 2018-2021.
“Government extends financial assistance in the form of a reduction of @ 6% interest per annum or 50% interest charged by banks, whichever is lower, on loans for bank extensions for five years, including one-year suspension” countries, to save foreign exchange due to the imported crude oil and air pollution bills, the government has decided target to compile 10 percent ethanol of petrol and gasoline by 2022 and 20 percent to be combined by 2025.
“Under these plans, the timeline for repaying ethanol projects has reached March / April, 2022. However, due to the unavoidable circumstances created by COVID-19, the project sponsors were unable to comply with the disbursement deadline for the loans from banks/financial institutions and are unable to complete their projects in the allotted time. Therefore, there is a need to extend the repayment period under interest rates announced in early 2018-2021, “the statement said. The Ethanol distillation capacity of molasses based distilleries was only 215 cr liters before 2014. However, the 7 years ago as a result of Government policy changes, the capacity of molasses based distilleries have increased by one and half times and are currently 555 kr liters. Thus, the total ethanol production capacity in the country has reached 835 crore ltrs.
“However, ethanol production capacity needs to be upgraded to 1700 crore liters to reach a 20 percent concentration by 2025. The decision to extend the ethanol project timeline will help improve ethanol production capacity,” the statement said. .
As of 2013, ethanol supply to OMCs (oil marketing companies) was only 38 liters crore, with a combined rate of only 1.53 percent in the 2013-14 ethanol supply year (ESY). With a view to boosting the agricultural economy, reducing dependence on imported fuel, saving foreign exchange due to the crude oil import bill and reducing air pollution, the government has set a 10 percent target of combining ethanol and petrol levels by 2022, and 20% by 2025.
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